THE PRESIDENT: Good morning. This is a challenging time for
families across our nation. I know many families are worried about
rising prices at the pump and declining home values. So this week my
Administration took steps to help address both these challenges.

To help address the pressure on gasoline prices, my Administration
took action to clear the way for environmentally responsible offshore
exploration of key parts of the Outer Continental Shelf, or OCS.
Experts believe that these areas of the OCS could eventually produce
nearly 10 years' worth of America's current annual oil production. So
on Monday I lifted an executive branch prohibition on exploration in
these areas.

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FAQ

Unfortunately, a full month has passed since I called on Congress
to lift a similar legislative ban, and Congress has done nothing. This
means that the only thing now standing between the American people and
the vast oil resources of the OCS is action from the United States
Congress.

Bringing OCS resources online will take time, and that means that
the need for congressional action is urgent. The sooner Congress lifts
the ban, the sooner we can get these resources from the ocean floor to
the gas pump. Democratic leaders need to show that they have finally
heard the frustrations of the American people. They should match the
action I've taken, repeal the congressional ban, and pass legislation to
facilitate responsible offshore exploration.

In the short term, America's economy will continue to depend on
oil, but in the long term our economic future depends on promoting
alternative energy technologies. So my Administration has worked to
expand the use of alternative fuels and raise fuel efficiency standards.
We're investing in new advanced batteries, plug-in hybrids, and hydrogen
fuel cells. We're working to expand the use of clean, safe nuclear
power, solar and wind power, and clean coal technology. With these
steps, we're enhancing America's energy security.

To address challenges in the housing market, my Administration
announced steps this week to help increase confidence in Fannie Mae and
Freddie Mac. These two enterprises play a central role in our housing
finance system, and we must ensure that they can continue providing
access to mortgage credit during this period of stress in financial
markets.

So Treasury Secretary Paulson has worked with Federal Reserve
Chairman Bernanke, the companies, and the government regulators on a
plan to strengthen these enterprises. I urge Congress to swiftly enact
this plan into law. And I also urge Congress to pass legislation that
strengthens the independent regulator of Fannie Mae and Freddie Mac,
modernizes the Federal Housing Administration, and allows state housing
agencies to issue tax-free bonds to refinance subprime loans.

Despite the challenges we have faced, our economy has demonstrated
remarkable resilience. Exports have continued to grow, productivity
growth has remained strong, and while economic growth in the first
quarter of this year was slower than we would have liked, it was growth,
nonetheless.

Thanks to the economic growth package we enacted, American families
have more cash in their wallets. We now have delivered more than $91
billion in tax relief to more than 112 million American households this
year. And in the coming months, we expect more Americans to take
advantage of these rebates, and inject new energy into our economy.

I have great confidence that our economy will pull through this
difficult period, because I have great confidence in the boundless,
innovative spirit of the American people. This is a Nation that has
faced tough challenges in the past and overcome them, and we will do so
again. With sound policies in Washington and the ingenuity of our
citizens, our economy will emerge from this period stronger and better
than before.